PNB vs Union Business Loan, 2026.
Reviewed by Jay Patel· Last reviewed: stale
A ledger-columns read on Punjab National Bank and Union Bank— rate, EMI, fee, fine print. Which one wins your file, not the pitch deck.
PNB vs Union — Business Loan Comparison
Key parameters compared side by side.
| Parameter | PNB | Union |
|---|---|---|
| Interest Rate (p.a.) | 10.35% – 14.75% | 10.5% – 14.75% |
| Processing Fee | 1.00% (min Rs 5,000) | 1.00% (min Rs 5,000) |
| Max Loan Amount | Rs 5 Cr | Rs 5 Cr |
| Max Tenure | 7 Years | 7 Years |
| Bank Type | Public Sector | Public Sector |
| Founded | 1894 | 1919 |
| Headquarters | New Delhi | Mumbai |
Interest Rate (p.a.)
PNB
10.35% – 14.75%
Union
10.5% – 14.75%
Lower/better: PNB
Processing Fee
PNB
1.00% (min Rs 5,000)
Union
1.00% (min Rs 5,000)
Max Loan Amount
PNB
Rs 5 Cr
Union
Rs 5 Cr
Max Tenure
PNB
7 Years
Union
7 Years
Bank Type
PNB
Public Sector
Union
Public Sector
Founded
PNB
1894
Union
1919
Headquarters
PNB
New Delhi
Union
Mumbai
Rates as of April 2026. Subject to change based on RBI policy and bank revisions.
EMI Comparison
Estimated EMI for Rs 20 Lakh business loan for 5 years at each bank's lowest rate.
PNB
Union
Savings: Choosing PNB saves you approximately ₹149 per month, or ₹8,940 in total interest over the loan tenure.
Feature Comparison
Key features offered by PNB and Union for business loan.
| Feature | PNB | Union |
|---|---|---|
| PNB Pragati scheme for MSME | ||
| MUDRA loans available | ||
| Working capital for traders | ||
| Agriculture business loans | ||
| Union MSME scheme | ||
| Working capital options | ||
| CGTMSE coverage | ||
| Priority sector lending |
PNB Pragati scheme for MSME
MUDRA loans available
Working capital for traders
Agriculture business loans
Union MSME scheme
Working capital options
CGTMSE coverage
Priority sector lending
Which Is Better — PNB or Union?
It depends on your priorities. Here is a quick guide.
Choose PNB If...
- Lower starting interest rate (10.35% vs 10.5%)
- Government-backed (public sector bank)
Choose Union If...
- Government-backed (public sector bank)
Still unsure? Contact Money Matrix Hub for a free personalised recommendation based on your income, credit score, and loan requirement.
Eligibility Comparison
General eligibility criteria for business loan at both banks.
PNB Eligibility
- Business vintage: 2+ years (ITR required)
- Min annual turnover: Rs 10 Lakh
- CIBIL score: 650+ preferred
- Valid GST registration
- Age: 21–65 years at loan maturity
Criteria may vary. Contact Money Matrix Hub for exact eligibility assessment.
Union Eligibility
- Business vintage: 2+ years (ITR required)
- Min annual turnover: Rs 10 Lakh
- CIBIL score: 650+ preferred
- Valid GST registration
- Age: 21–65 years at loan maturity
Criteria may vary. Contact Money Matrix Hub for exact eligibility assessment.
Frequently Asked Questions
Common questions about PNB vs Union business loan.
Which bank has a lower business loan interest rate in 2026 — PNB or Union?
PNB currently offers a lower starting rate of 10.35% p.a. for business loan. However, the actual rate you receive depends on your credit score, income, and loan amount. Money Matrix Hub can help you get the best negotiated rate from both banks.
What is the maximum business loan amount I can get from PNB vs Union?
PNB offers a higher maximum loan amount of up to Rs 5 Cr. PNB offers up to Rs 5 Cr while Union offers up to Rs 5 Cr for business loan.
Which bank charges a lower processing fee for business loan — PNB or Union?
PNB charges a processing fee of 1.00% (min Rs 5,000), while Union charges 1.00% (min Rs 5,000). Processing fees are often negotiable, and Money Matrix Hub can help waive or reduce these charges.
Should I choose PNB or Union for business loan in 2026?
The best choice depends on your specific needs. PNB offers rates from 10.35%–14.75% with a max tenure of 7 years, while Union offers 10.5%–14.75% with 7 years tenure. Contact Money Matrix Hub for a personalised comparison based on your profile.
Can Money Matrix Hub help me apply for a business loan from both PNB and Union?
Yes. Money Matrix Hub is an authorised DSA partner for both PNB and Union. We can submit parallel applications at no extra cost and help you pick the best sanction offer. Our service is 100% free for borrowers.
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